Chinese Smartphone Makers Turn to Google AI to Compete Globally
Chinese smartphone manufacturers are partnering with Google to enhance their artificial intelligence (AI) capabilities as they seek to compete with Apple and Samsung in global markets. However, analysts say these brands face challenges in differentiation and creating compelling use cases.
At MWC Barcelona this week, Xiaomi, Honor, Oppo, and other Chinese handset makers showcased their latest AI-powered smartphones, highlighting features developed using Google’s Gemini model. These brands promoted AI tools such as "AI erasers" for removing unwanted objects in photos and AI agents capable of tasks like making restaurant reservations.
Chinese manufacturers opted to collaborate with Google due to its "full stack" capabilities, which include apps like YouTube, as well as hardware and infrastructure, according to Nicole Peng, research vice-president of consumer at Omdia and senior vice-president at Canalys.
"Many Chinese vendors realised that they needed a partner to move things forward overseas," Peng said. "This is a move that follows Samsung’s collaboration with Google, instead of one towards differentiation."
At Honor and Oppo’s respective MWC events, Matt Waldbusser, Google Cloud’s managing director of global solutions and consumer AI, highlighted how Gemini’s integration with Chinese smartphones enabled AI-driven features.
On Oppo’s devices, Gemini could retrieve information and assist users with tasks across native applications such as notes, calendar, and clock, without requiring them to switch apps, Waldbusser said on Monday.
Bryan Ma, vice-president of client devices research at IDC, noted that many AI features introduced by smartphone makers were similar, focusing on imaging, productivity, and translation.
"So far in the early days of the AI smartphone market, it’s been harder for these vendors to differentiate," Ma said.
The partnerships with Google are part of broader strategies by Chinese smartphone brands to expand their presence in international markets and compete with Apple and Samsung, the world’s two largest handset vendors last year, according to IDC.
Chinese Android handset makers are also facing slow growth amid intense domestic competition, where Huawei Technologies has made a strong comeback. Last year, Oppo’s market share in mainland China declined by 10.4%, while Honor’s share fell by 2.8%, according to Counterpoint data. In contrast, Huawei gained 36.4%.
Geopolitical uncertainties remain a concern for Chinese companies under the new US administration. However, its stated intention to end the Ukraine war has encouraged them to renew efforts in markets significantly affected by the conflict, Peng said.
As Chinese vendors push AI smartphones overseas, they also face the challenge of developing AI features that consumers find valuable enough to pay for.
"How can AI phones bring true value to users? The companies haven’t quite figured it out yet," Peng said. "After a year of trying, it seems like there hasn’t been much feedback on what was invested."
The industry is watching to see if smartphone makers will introduce more compelling AI use cases and integrate their AI capabilities with more third-party developers this year, Ma said.
Chinese smartphone makers are partnering with Google to enhance AI capabilities and compete globally.
Xiaomi, Honor, and Oppo showcased AI-powered features at MWC Barcelona, including AI erasers and AI agents.
Analysts say differentiation remains a challenge, as many AI features are similar across brands.
Source: SCMP